Permanent Account Number (PAN) is a national identification number, issued to all taxpayers of India whose income is taxable. This number is issued by the Income Tax Office.
This number is required for many activities such as opening an account, getting a phone line, receiving salary or professional fees. The primary purpose of PAN is to prevent tax evasion by keeping a track of monetary transactions. The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states.
This number can be considered to be similar to Social security number issued in United States to citizens and other legal residents.
Structure and validation
* PAN structure is as follows: AAAAA9999A: First five characters are letters, next 4 numerals, last character letter
* Each deductee is uniquely identified by the PAN
* If the PAN does not follow the above structure, then the PAN will be shown invalid
* The fourth character of the PAN must be one of the following, depending on the type of assesses:
C — Company
P — Person
H — Hindu Undivided Family (HUF)
F — Firm
A — Association of Persons (AOP)
T — AOP (Trust)
B — Body of Individuals (BOI)
L — Local Authority
J — Artificial Juridical Person
G — Govt.
* The fifth character of the PAN is the first character in the surname of the person to whom the PAN belongs.
Where to begin
Your application for PAN must be made on Form 49 A. You can obtain it from IT PAN Service Centers or TIN Facilitation Centers, or download it from the website of the Income Tax Department, UTI Investor Services (www.utitsl.co.in) or NSDL (www. tin.nsdl.com). You can submit the completed form to any TIN Facilitation Center or PAN Service Center. Alternatively, you can make an online application on the UTI Investor Services website or on the tin-nsdl website. You have to pay a processing fee of Rs. 60 (plus service tax) while submitting the form. For foreign addresses, the fee is Rs. 717. On submitting the application, you will receive a unique 15-digit acknowledgment number.
What you need
Make sure that you attach all the necessary documents:
- Proof of identity: Submit a copy of any one of the following – School-leaving or matriculation certificate, recognized degree, credit card, bank account statement, passport, ration card, driving license, property tax assessment order, water bill, voter’s identity card, certificate of identification signed by a Member of Parliament or Legislative Assembly, Municipal Councilor or Gazetted Officer.
- Proof of address: A copy of any one of the following will suffice – Bank account statement, passport, voter’s identity card, driving license, ration card, employer’s certificate, electricity or telephone bill, property tax assessment order, rent receipt or certificate of address signed by a Member of Parliament or Legislative Assembly, Municipal Councilor or Gazette Officer.
- Photograph: Individual applicants need to affix a recent stamp-size color photograph.
Some useful tips
- In your application, you will need to mention the designation and code of the concerned Assessing Officer of the IT Department.
- Ensure that you mention your full name. Do not use initials.
- If you are an NRI, you have the option of applying through a resident representative. If you prefer, you can apply directly, so long as you are in one of the 90+ countries listed on their web site as mailing locations.
- You can track the status of your application on the tin-nsdl website – for this, you need to quote your acknowledgement number. An SMS status tracking facility is also available.
If the procedure sounds daunting, simply approach a tax consultant or a service provider such as NRI Tax Services. Within one month of application, your PAN card should be in your hands!
How to Track your PAN card:
One can visit the UTI Investor Services (www.utitsl.co.in) or NSDL (www. tin.nsdl.com).
Source: ChilliBreeze |
